Prime Minister Gaston Browne of Antigua and Barbuda has strongly criticized Sandals Resorts International (SRI), urging the Jamaica-based luxury hotel chain to consider removing its property from the twin-island nation if it continues its “policy” of avoiding taxes.
Speaking on his radio program over the weekend, Browne expressed frustration over what he claims is a pattern by Sandals of withholding taxes owed to the government, including approximately EC$30 million (US$75.3 million) in Antigua and Barbuda Sales Tax (ABST) collected at its Sandals Grande Antigua resort.
“I don’t understand why these so-called investors feel that they are the only game in town and are the only stakeholders to benefit,” Browne said, referencing the 373-room, six-star resort. “They try to wring every ounce of revenue out of the business and they don’t want the government to get anything in the form of taxes. I have been through this already with Sandals, and I don’t want to go down that road with them again,” he added.
A history of tax disputes across the Caribbean
Browne’s comments follow a recent issue Sandals encountered in the Bahamas, where the company also had to settle outstanding tax payments. He alleged that Sandals has a history of tax-related disputes across the Caribbean, suggesting the company’s approach puts undue strain on local economies.
“Everywhere they go, this is their modus operandi!” Browne declared, criticizing Sandals for focusing solely on profits. He specifically addressed Sandals’ executive chairman, Adam Stewart, stating, “Sandals is not the only stakeholder when you open your hotels in a Caribbean country; you have staff who deserve a good pay; you have the government who ought to get its fair share of taxes. You cannot rely exclusively on exploiting concessions and to push governments into the ground; you all need to stop it!”
‘Colonist’ approach to business
Browne likened Sandals’ business model to a “colonialist” approach that exploits local resources without fair compensation, an accusation he says is deeply disappointing given Sandals’ status as a beloved Caribbean brand. “This is a colonialist model that does not work for the Caribbean people,” he said. “You should be proud to be able to say that your workers are making a decent salary so that they could afford a mortgage, a good car, etc. It’s not about you expanding while others are suffering.”
The Prime Minister emphasized that low wages in the hospitality sector have made it challenging for hotels to attract local workers, while Sandals continues to profit significantly. “Every time there is an assessment, you come with all kinds of reasons why you should not be paying,” he said. “I’m tired of it. If this is going to be your attitude going forward, where only Sandals benefits, then take your hotel elsewhere; and I am very serious.”
SRI has not yet issued a response to Browne’s comments. The Prime Minister noted that he was “shocked” to learn of Sandals’ alleged lack of cooperation with the Inland Revenue Department and reiterated that this tax issue is not unique to Antigua and Barbuda but affects other Caribbean countries where Sandals operates.
